Local paper headlines_Oct 19

1. Chosun Ilbo

- The government is said to decide to halt financial assistance to Mount Kumkang tour in line with the UN Resolution. A government official close to the matter said yesterday “Mount Kumkang tour is a very symbolic business of inter-Korean relations and is a private business so the government can’t stop the business.” “But we decided instead to stop the assistance after we had collected public opinion that the government subsidies shouldn’t continue.”

- Ri Geun at North Korea’s Foreign Ministry said yesterday in an interview with an ABC anchorwoman Diane Sawyer, “a second nuclear test is a natural thing,” and “it is nothing to be surprised with.” Mrs Sawyer is the only western reporter to be allowed in to the reclusive regime among many who applied for it after the nuclear test.

- Cheong Wa Dae security advisor Song Min-soon said in his lecture at ‘The 21 Century North-east Asia Future Forum,’ “the US is the country who went through so many wars and Korea, left in the ‘security irregularities structure,’ is the biggest loser by war.” “We should take these factors into consideration and harmonize two countries’ policies toward North Korea.”

- North Korea Rodong Sinmun reported yesterday that Kim Jong il had said “revolution is about belief, willingness, and gut. You can’t achieve revolution which requires you to go through so many hardships unless you have gut and firm belief to win.” But the paper didn’t specify when and where Kim made such remark.

- Foreign investors who bought stocks on the news of North Korea’s nuclear test are now selling off their stocks for five consecutive days. In the stock market yesterday they sold W185.6 bn worth of company shares.

2. Maeil Business Daily

- An official at the Industrial Bank said “a few big companies suspended their plan to borrow in overseas capital due to North Korea’s N-test,” and “if the nuclear crisis continues, borrowing from overseas can be more difficult and even if possible, they have to pay higher interest rate.”

- It is reported that US Congressional Research Service (CRS) came to Korea to conduct an investigation into the two inter-Korean economic projects whether these two are contradictory to the recently adopted UN resolution.

- Lee Jung-sik, president of LG Powercom, said “LG Group has no plan to acquire Hanaro Telecom.” Rumors have been spreading that Hanaro Telecom will be bought by either SK Telecom or LG Group.

- Big companies are increasingly set their eyes on small venture Kosdaq-listed companies in order to make inroads into a new niche market with less risk by acquiring companies with proven technology. In October, three small ones have been merged.

- Doosan Liquor BG expands its production facility for its ‘Cheumcherum’ soju to meet increasing demands. A Doosan official assumed the national market share of its soju to be about 11.3 % and expected it to increase to 12% by the end of this year.